Qwest Weighing Phoenix Sequel to Failed Forbearance Petition
Qwest is mulling whether to refile for forbearance in the Phoenix metropolitan statistical area, according to a July 30 Qwest e-mail to Capitol Hill offices. Last month, the FCC denied a Qwest forbearance petition seeking unbundling relief in Phoenix, Denver, Seattle and Minneapolis. Shortly after, Qwest filed for review in the U.S. Appeals Court for the D.C. Circuit. “Qwest still believes that competition is rigorous in these markets,” said Brooks Brunson, Qwest federal relations director, in the e- mail.
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If Qwest refiles for forbearance, the Bell “may only re- file [its] Phoenix petition,” Brunson said. A Qwest spokesman wouldn’t say whether the situation has changed, saying only that Qwest hasn’t “made any refilings at the FCC.” Competitive local exchange carriers, the Qwest petition’s biggest opponents, are already bracing for Qwest to refile for forbearance in Phoenix (CD July 29 p12). Qwest faces competition from Cox there. Refiling in a more specific geographic area isn’t unprecedented. After the FCC denied a Verizon forbearance petition for six MSAs last December, Verizon responded by filing two new petitions for Rhode Island and Virginia Beach.
Qwest wants the D.C. Circuit to find the FCC order unlawful, and then vacate, enjoin and set it aside, Qwest said in a July 29 petition for review. The Bell seeks review on the grounds that the order exceeds FCC jurisdiction and authority, violates the Communications Act as amended by the 1996 Telecom Act, and is “arbitrary, capricious, an abuse of discretion, and otherwise contrary to law,” Qwest said. The FCC denial “causes Qwest direct and concrete injury,” the carrier said.
The court filing doesn’t detail the substance of Qwest’s argument. A Qwest spokesman didn’t elaborate, calling it “standard practice” to take an FCC denial to court, he said. In the days leading up to the FCC’s decision, debate centered around whether the FCC should include wireless substitution data in its market test.